Business Research

Let’s manage our knowledge

 Business Research

Business research is defined as the

systematic and objective process of
generating information for aid in
making business decisions.
Business Research
 Research information is neither intuitive
nor haphazardly gathered.
 Business research must be objective
 Detached and impersonal rather than
biased
 It facilitates the managerial decision
process for all aspects of a business.
 Information reduces uncertainty.
Nature of Business Research
 Data are collected systematically.
 Data are interpreted systematically.
 There is a clear purpose: to find things
out.
 Research Process
Problem Discovery Discovery and
and Definition Definition

Research and so on
Design Conclusions and
Report

Sampling
Data Processing
and Analysis
Data
Gathering
Business Research Types

Basic research

Applied research
Basic Research
 Attempts to expand the limits of
knowledge.
 Not directly involved in the solution
Applied Research
 Conducted when a decision must be
made about a specific real-life problem
 Determining When to Conduct
Business Research
 Time constraints
 Availability of data
 Nature of the decision
 Benefits versus costs
Determining When to Conduct Business Research

Availability of Data Benefits vs.

Time Constraints Nature of the Decision Costs
Is the infor- Does the value
Is sufficient time Is the decision Conducting
Yes mation already Yes Yes of the research Yes
available before of considerable
a managerial
on hand
strategic
information Business
inadequate exceed the cost
decision
for making
or tactical
of conducting Research
must be made? importance?
the decision? research?

No No No No

Do Not Conduct Business Research

Major Topics for Research in Business
 General Business Conditions and Corporate
Research
 Financial and Accounting Research
 Management and Organizational Behavior
Research
 Sales and Marketing Research
 Information Systems Research
 Corporate Responsibility Research
Global Business Research
 General information about country -
economic conditions and political
climate
 Cultural and consumer factors
 Market and competitive conditions -
demand estimation
Classify each of the following
examples
as
basic or applied research
 A researcher investigates whether
different sites in a manager’s brain
(e.g. right versus left hemisphere)
are active during different kinds of
managerial decision-making.
 A researcher investigates consumers’
attitudes toward a prototype of an
innovative type of product, a home
Cleaning kit for use on clothes that
require dry cleaning.
 A researcher investigates 5 personality
traits to see if they can explain the
purchasing behavior of automobile
buyers.
 A new technology that nullifies the need
to refrigerate fish has been invented.
Heat processing and the use of flexible
pouches for storage helps retain the
freshness of fish and frozen food for
three years. A researcher investigates
how this new technology will impact the
market for fish in India.
 Researcher working for a candy
company has children evaluate
concepts and prototypes for new
candies. The researchers ask children to
taste the products and rate them.
Sometimes, the candy company
develops unique items that taste good
and researchers ask children to come
up with a concept or a name the
product
 A researcher investigates whether
introducing a “subbrand” at new-car
dealerships, identified by an
AutoNation USA logo below the
dealership name, is an effective basic
strategy that can be applied to all its
dealerships.
The primary function of business
research is to:

A. provide the solution to a business

problem.
B. attempt to predict future behavior.
C. identify personal needs.
D. provide information to assist
managers in making decisions.
 When deciding whether business
research should be conducted, each of
the following factors is a major
consideration EXCEPT:
A. time constraints.
B. availability of the data.
C. availability of company employees
who are survey experts.
D. value of business research
information in relation to its costs.
Which of the following should a manager ask
before deciding whether or not to do
business research?
A. Will the information obtained
improve the quality of the decision
enough to justify the costs?
B. Is this research project the best use
of available funds?
C. Will the payoff from the research be
worth the dollars invested?
D. All of the above
 Question
Describe a situation in which business
research is not needed and one in
which business research is needed.
What factors differentiate between the
two situations?